Asia stocks muted amid Greek uncertainty, US break

PAMELA SAMPSON, AP Business Writer

Asian stock markets were muted Monday amid continuing uncertainty about Greece's future in the euro currency union and ahead of a holiday in the U.S.

The likelihood of Greece leaving the euro has been growing steadily since early May, when political parties opposed to the austere terms of the country's financial rescue received unexpectedly high support.

Surveys over the weekend showed that Greeks, while angry after more than two years of austerity measures that have seen salaries and pensions cut and new taxes imposed, still prefer Greece to keep the euro currency and not revert back to the drachma.

Still, the May election results were so splintered that it left the country without a coalition government. Another election has been set for June 17.

"With less than three weeks to the Greek elections, uncertainty remains whether a pro-bailout coalition can be formed," analysts at Credit Agricole CIB in Hong Kong said in an email.

Hong Kong's Hang Seng was down less than 0.1 percent to 18,703.01. But Australia's S&P/ASX 200 rose 0.5 percent to 4,050.60 as traders scooped up bargains among resource shares that have underwent recent selloffs.

South Korean markets were closed for a public holiday. Wall Street will be closed Monday for Memorial Day, which typically results in subdued stock trading globally.